New Delhi, Dec 27 (NationPress) On Saturday, the government unveiled the operational guidelines for two significant shipbuilding initiatives, totaling Rs 44,700 crore. These initiatives are designed to enhance India's domestic shipbuilding capabilities and boost its competitiveness on a global scale.

The Shipbuilding Financial Assistance Scheme (SBFAS), which comes with a total funding of Rs 24,736 crore, will offer financial support ranging from 15% to 25% per vessel, based on the category of the vessel.

This scheme introduces a tiered support system for small normal, large normal, and specialized vessels, with disbursement phases linked to specific milestones and supported by security instruments. It also includes incentives for bulk orders.

Over the next decade, SBFAS is anticipated to facilitate shipbuilding projects valued at approximately Rs 96,000 crore, encourage domestic manufacturing, and create jobs throughout the maritime value chain.

The Shipbuilding Development Scheme (SbDS), with an allocation of Rs 19,989 crore, aims at long-term capacity building and capability enhancement. This scheme will support the development of greenfield shipbuilding clusters, the modernization and expansion of existing brownfield shipyards, and the creation of an India Ship Technology Centre under the Indian Maritime University to promote research, design, innovation, and skills development.

The established guidelines provide a clear and accountable framework for execution.

Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, stated that Prime Minister Narendra Modi has fundamentally reset policies governing India's shipbuilding sector.

“These guidelines establish a stable and transparent framework that will rejuvenate domestic shipbuilding, enhance both upstream and downstream linkages under the ‘Make in India’ initiative, attract large-scale investments, and develop world-class capacities, positioning India as a prominent maritime nation on its journey towards Viksit Bharat and Aatmanirbhar Bharat,” he noted.

Under the SbDS, greenfield shipbuilding clusters will receive full capital support for shared maritime and internal infrastructure via a 50:50 Centre–State special purpose vehicle, while existing shipyards can access 25% capital assistance for brownfield infrastructure expansions, such as dry docks, shiplifts, fabrication facilities, and automation systems. Disbursements will be milestone-based and evaluated by independent agencies.

The scheme also features a Credit Risk Coverage Framework, which provides government-backed insurance for pre-shipment, post-shipment, and vendor-default risks to enhance project bankability and financial stability.

With the establishment of modern infrastructure and a skilled workforce, it is projected that India’s commercial shipbuilding capacity could reach approximately 4.5 million gross tonnage per year by 2047, according to the ministry.

Both SBFAS and SbDS will remain operational until March 31, 2036, with a potential extension planned until 2047.